Leveraged loan sector one to watch for litigators

As this asset price bull cycle heads towards its inevitable peak, whether it is within six months or a couple of years, litigators should be keeping an eye on sectors where the most investors will be nursing losses.

The leveraged loan sector looks promising, at least from a litigators perspective, as documentation gets looser, permitting borrowers to pay out more in dividends and boost the leverage of their acquisition targets.

There are many indicators of hubris by which to measure market euphoria, and loosening credit terms in risking areas of lending has to be one of them.